NBFC MFIs and SBFs Lead in New Second Quarter Micro-Loan Disbursements: CRIF Report

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Chennai: NBFC MFIs and small finance banks lead new micro-loan disbursements during the July-September 2021 quarter. Driven by 300% QoQ growth in new loan disbursements by NBFC’s MFIs and small finance banks, the microfinance loan portfolio recovered in the second quarter, the CRIF MicroLend report shows.
NBFC MFI, SATYA MicroCapital Ltd has seen its share of new client activity improve since the second quarter and continue to grow in October and November. Its Managing Director, CIO and CEO Vivek Tiwari said, “We have opened 100 branches in the past year which has made it easier to acquire new customers in rural India. ”
October saw an increase in inquiries from first-time borrowers to 24%, from 18% to 20% between July and September 2021, according to the report.
On the volume side, the share of new customers rose from 20% in Q1 to 40% in Q2. However, on the value side, existing clients have a preference for larger loans.
“Otherwise, we’re pretty comfortable on the capital front,” Tiwari said.
At the industry level, there is 142% QoQ growth in loan value disbursements and 147% QoQ growth in loan volume in the second quarter.
Loan recovery in the microfinance portfolio also improved 2.1% qoq in the second quarter of FY22, following a decline of almost 7% qoq in the previous quarter. About 81% growth in disbursements during the quarter was recorded by banks.
Lenders continue to struggle with the microcredit default rate – above 90 days – unchanged at 3.3% in the September quarter, compared to the previous quarter.


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